Question: The total return on a stock is equal to Multiple Choice (1 + Dividend yield) (1 + Inflation rate) 1. Capital gains yield + Dividend

The total return on a stock is equal to

Multiple Choice

(1 + Dividend yield) (1 + Inflation rate) 1.

Capital gains yield + Dividend yield.

(1 + Capital gains yield) / (1 + Dividend yield) 1.

Capital gains yield Dividend yield.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

The holding period return on a stock is equal to Multiple Choice the current yield plus the dividend yield o the dividend yield plus the risk premium o the capital gain yield over the period plus the...

Q:

\fe. Suppose your boss tells you she believes that WME's annual growth rate will be only 12%% during the next 5 years and that the firm's long-run growth rate will be only 4%. Without doing any...

Q:

MC Qu. 10 The holding period return on a... The holding period return on a stock is equal to Multiple Choice the capital gain yield over the period plus the inflation rate O the capital gain yield...

Q:

One year ago, Barkley's stock sold for $28 a share. During last year, Barkley's paid $1.23 per share in dividends and saw its stock price increase by 7 percent for the year. Today, the firm announced...

Q:

The total return earned on a stock investment is equal to the: dividend yield minus the capital gains yield dividend growth rate minus the dividend yield dividend yield plus the capital gains yield...

Q:

1. The SML approach to valuing a stock has several advantages when compared to the dividend cash flow model that include: A) adjusting for risk B) SML can be used even if a firm does not pay a...

Q:

QUESTION 50 Which of the following statements is correct regarding a company's stock. o The expected total return on a stock is a combination/sum of the stock's dividend yield and its expected...

Q:

Okonjo Economics has a debt-equity ratio of .38. All of the firm's outstanding shares were purchased by a small number of investors. The return these investors require is called the: Multiple Choice...

Q:

(7-19) Taussig Technologies Corporation (TTC) has been growing at a rate of 20% per Supemormol Growth year in recent years. This same supernormal growth rate is expected to last for anStock Voluorion...

Q:

Taussig Technologies Corporation (TTC) has been growing at a rate of 20% per year in recent years. This same supernormal growth rate is expected to last for another 2 years (g1 = g2 = 20%). a. If D0...

Q:

The Palya Company entered into a subscription contract on April 1, 2007. The agreement required the subscribers to purchase 5,000 shares of $10 par value common stock for $75,000. A down payment of...

Q:

The Burj Khalifa in Dubai is 2,717 feet tall, making it the world's tallest building.

Q:

What is the main function of an operating system? A ) Manage hardware and software resources B ) Process data C ) Provide power to the computer D ) Connect to the internet

Q:

Why might intrinsic value not always reflect market value when it comes to stocks and bonds?

Q:

=+Write your answer using a concrete examplesuch as an American hot dog versus a Mexican tacothat will convince your friend.

Q:

=+ 11. You read in a newspaper that the nominal interest rate is 12 percent per year in Canada and

Q:

=+10. Traveling in Mexico is much cheaper now than it was ten years ago, says a friend. Ten years ago, a dollar bought 10 pesos; this year, a dollar buys 15 pesos. Is your friend right or wrong?...